3. Gradually advance Program Based Budgeting and furtherstrengthen budget preparation processes and capacity

•Why: To further deepen policy orientation of the budgetprocess and to prepare for results based budgetingimplementation and management

•How: Build on existing process andaddress downstreamimplications of Program Based Budgeting (Adjustment of theChart of Accounts, reporting, treasury operations). Consider aconsultation with current and potentialPBB

strategy (wide-area network, datacenter) in light of e-Government plans ofGoA. Identify essentialdata input and reporting requirements of PFM reform program anddevelop interim IT solutions for them based on current or newsoftware, according to cost and technology factors. Design andengineer interim IT solutions for possible expansion and industrialstrengthening. Execute training plan for internal IT staff (SOA,project management, IT procurement)

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Assessment and key messages

•Further integration of business processes are necessary to achieve a nextlevel of PFM.

•Status quo on ICT is not an option if ongoing reforms are implemented.

•Work on PPB with a view to strengthening policy orientation of the budgetshould continue while maintaining the existing execution controls.

•ICT management capacity should be improved in any reform scenario.

•Capacity development and change management should take center stagein any reform scenario.

•Current plans for reforms implies a rather large investment. Furtherpreparatory activities should be informed by priorities and fundingavailability.

•PIFC

is an important but complicated and long term process. Focus ondelegation and organization is hugely important for the efforts to gobeyond increased compliance control.